What Does a Time Value of Zero Signify?
A time value of zero signifies that the option has no speculative value remaining. This occurs only at the option's expiration date.
At this point, the option's premium is equal to its intrinsic value.
Glossar
Time Value
Component ⎊ Time value, also known as extrinsic value, is a component of an option's premium that reflects the probability of the underlying asset's price moving favorably before the option expires.
Time Value of Zero
Derivation ⎊ The Time Value of Zero, within cryptocurrency derivatives and options trading, signifies a theoretical point where an option's premium is entirely composed of intrinsic value, devoid of any speculative time component.